HDFC Life falls over 3% after block deals


MUMBAI: HDFC Life Insurance Ltd witnessed a series of block deals on the exchanges on Tuesday, with around 101 million shares comprising 5% stake in the company, changing hands, as per a Bloomberg report. Details of the buyers and sellers were not available.

The stock declined 3.4% to hit a low of Rs672.15 apiece. At 9.40am, the scrip traded at Rs693.90 on BSE, down 0.3% from its previous close.

09:1510:0010:4511:3012:1510:0011:0012:00675680685690695700705032MTuesday 10:24? HDFC Life Insurance Co Ltd.: 695.75? volume: 21,865,473.00

On 28 June, Mint had reported that Standard Life, co-promoter of HDFC Life Insurance Co Ltd, was selling a 3.46% stake in the company, worth at least $621 million ( ?4,606 crore) through a block deal. Shares are being offered to investors in the range of Rs658-678 apiece, a discount of 5.5-2.6% to the closing price of ?696 per share on Monday, according to the deal terms.

Standard Life (Mauritius Holdings) 2006 Ltd currently owns an 8.88% stake in the life insurance company.

Investment banks JP Morgan and Bank of America are managing the share sale.

Standard Life has been paring down its stake in HDFC Life for a while now.

In December, Standard Life sold a 1.37% stake in the company for Rs1,703 crore. In June 2020, the firm had sold a 2% stake for Rs1,890 crore.

In 2019, Standard Life pared its stake in HDFC Life through a number of transactions. In October 2019, Standard Life sold a 4.96% stake to a clutch of institutional investors at Rs575.15 apiece to mop up Rs5,750 crore, while in August that year it sold 3.2% stake via block deals. In March 2019, it had divested 4.93% stake in the life insurer to raise about Rs3,600 crore.

News Source:- Livemint

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